Steel workers ballot over pay cut plans

Union members at Tata’s Scunthorpe site are being balloted on a 3 per cent cut in pay and a reduction in pensions, part of a “transformation plan” ahead of the expected sale to investment firm Greybull Capital.

Negotiations over the sale of the plant, which employs around 4,000 workers, have been taking place for several months, well before Tata announced last week that it was selling all its UK assets.

Steve McCool, national officer of the Community union, said terms and conditions at Scunthorpe would be restored after a year.

“We are hopeful that the deal between Tata Steel and Greybull can be completed soon. Our own independent experts, Syndex, have found the transformation plan to be robust with a high probability of success. Our experts have also advised us that Greybull has the necessary capabilities to deliver the plan and secure a sustainable future for the business.

“Having given all the proposals and the context full consideration, myself and the national officers from the other unions are recommending that our members vote for the temporary changes to terms and conditions on the basis that this will give the transformation plan with Greybull a greater chance of success,” he said.

Members of Unite and the GMB are also being balloted, with the result due on April 19.

Community said negotiations with managers at Tata’s Long Products division over the transformation plan had been difficult.

Leaders of Community, Unite and the GMB spent an hour with Mr Javid before he left for Mumbai, stressing they wanted the Tata business sold together rather than firms “cherry-picking” different parts.

Unite leader Len McCluskey said it was a “good first step”, adding that unions would work with the Government and any prospective buyers.